Gold nearly erased a loss of $25 to move back above the key $1,300-U.S.-an-ounce level on Friday, after July payrolls growth came in short of expectations and analysts said plans for the U.S. Federal Reserve to taper its bond-buying could be pushed further out.
Recovering from a drop of more than $25, gold for December delivery was off $1.60 to $1,309.60 U.S. an ounce, tentatively setting up for its fourth straight losing session.
Gold had earlier fallen below the key $1,300-U.S.-an-ounce level as a week’s worth of upbeat data had some economists expecting July jobs growth of 180,000 and upwards. However, the data showed 162,000 jobs were created, though the unemployment rate dropped to a more than five-year low of 7.4% And that data underpinned gold.
The metal faces a weekly loss of around 0.9%.
Dollar-denominated gold tends to come under pressure if the U.S. dollar is rising, but as the greenback fell in the wake of the data, gold pushed higher.
Gold futures on Thursday had lost $1.80, or 0.1%, on the Comex division of the New York Mercantile Exchange.
Brightening economic data raise expectations that the Fed will slow the pace of its monetary stimulus. Low rates and large-scale bond purchases have been considered a drag on the dollar’s value but a boon for gold prices in recent years. There was a clutch of upbeat data this week that had many economists expecting a strong jobs number and further reasons to scale back the Fed’s bond buys.
Silver turned around a loss, with the September contract rising 27 cents, or 1.4%, to $19.95 U.S. an ounce.
September copper rose two cents, or 0.7%, to $3.19 U.S. a pound.
Also paring losses, October platinum fell $4.90 to $1,438.90 U.S. an ounce, while September palladium lost $1.60 to $730.25 U.S. an ounce.
